STOCKS | Dida Chuxing Shares Jump Over 80% After Tongcheng Travel Announces Cash Offer

Dida Chuxing shares surged more than 80% in early trading in Hong Kong after Tongcheng Travel announced a voluntary conditional cash offer to acquire the company. According to Jin10, Tongcheng Travel said it would make the offer through its wholly owned subsidiary eLong, Inc. The joint announcement said five major shareholders of Dida Chuxing signed irrevocable undertakings to accept the offer for shares representing about 53.70% of Dida Chuxing’s issued share capital. The announcement added that the acquisition was not intended to privatize Dida Chuxing. Dida Chuxing also proposed paying a special cash dividend of HK$1.1745 per share after all conditions were met. Shareholders who accepted the share offer would still be entitled to the special cash dividend, and shareholders would be entitled to the dividend regardless of whether they accepted the offer.